CBInsights notes in a new report that AI funding has reached $23.2B in Q2’24 — the highest quarterly level on record.
CBInsights pointed out that global AI funding “climbed once again in Q2’24, jumping 59% QoQ to hit $23.2B — the highest quarterly level on record.”
The report from CBInsights further revealed that massive rounds “to a handful of startups, including Elon Musk’s xAI, were key drivers behind the jump, which outpaced the growth in broader venture funding (+8% QoQ).”
Meanwhile, CBInsights pointed out that the “overall AI deal volume broke its extended freefall in Q2’24, rising by 16% QoQ to reach 948.”
This bucked the trend in venture deals “more broadly (-7% QoQ).”
CBInsights also mentioned in the report that “based on their deep dive in the full report, here is the key takeaways on the state of AI:
Global AI funding increases 59% QoQ to $23.2B in Q2’24 — the highest quarterly level on record, exceeding even the level seen during 2021’s venture boom. The jump was driven by a handful of $1B+ rounds and outpaced the growth in broader venture funding (+8%). Meanwhile, AI deal count climbed by 16% QoQ to reach 948, bucking the trend in venture deals more broadly (-7% QoQ).
Average AI deal size is $28.9M in 2024 so far — up 55% vs. $18.6M in full-year 2023. A relatively small number of players have had an outsized impact on this upward trend, raising massive $1B+ deals in Q2’24:
xAI — $6B Series B at a $24B valuation
G42 — $1.5B investment from Microsoft
CoreWeave — $1.1B Series C at a $19B valuation
Wayve — $1.05B Series C from Softbank, Microsoft, and Nvidia
Scale — $1B Series F at a $13.8B valuation
Meanwhile, the median AI deal size is up 25% in 2024 so far.
AI unicorn births remain steady at 6 QoQ in Q2’24. Generative AI was “a key theme for new unicorns (private companies reaching $1B+ valuations). Some of these companies, like xAI, are focused on generative AI infrastructure. Others are primarily working on generative AI applications, like Perplexity (search) and Cognition (coding).”
Among new AI unicorns in Q2’24, xAI landed the most sizable valuation. The company was valued “at $24B after raising $6B in Series B funding, which it plans to use to bring its first products to market.”
AI companies raise 32 mega-rounds (deals worth $100M+) in Q2’24, marking “a 28% increase QoQ. Meanwhile, funding from AI mega-round deals climbed 74% QoQ in Q2’24.”
This was largely driven “by US mega-round deals, which collectively amounted to $10.8B — 67% of AI mega-round funding in Q2.”
Among major global regions, the US continues to “lead in AI funding and deals. AI startups based in the US drew $15.2B across 476 deals in Q2’24. This equates to 66% of the global AI funding total and 50% of the global deal total in Q2.”